Coin processing machines generally have the ability to receive bulk coins from a user of the machine. Coin processing machines include a redemption type of machine wherein, after the deposited coins are counted, a receipt is issued indicating the value of the deposited coins. The user may redeem this receipt for the amount of deposited coins in the form of currency bills. In other embodiments, the receipt is redeemed for the amount of the deposited coins less a commission charged for use of the coin redemption machine.
Prior art coin redemption machines are commonly used in a banking environment and/or a retail environment such as a grocery store. In operation, a user inputs (i.e., deposits) a batch of coins of mixed denominations into a hopper of the coin redemption machine. The machine determines the value of the deposited coins and outputs a receipt indicative of the determined amount. In some embodiments, the receipt also indicates a second, lesser amount, which reflects a commission charged for use of the machine. The user redeems the receipt for paper currency for the value of the deposited coins less the commission. For example, in a banking environment, a user redeems the receipt at the teller's window. In a retail environment, the user can redeem the receipt at a cashier's station or a customer-service station.
One disadvantage associated with prior art coin redemption machines is the potential for fraud which exists with current receipt-type systems. For example, a receipt can be duplicated (i.e., counterfeited) and then redeemed more than once resulting in a loss for that particular store. Furthermore, if the receipt is lost by the user or is stolen from the user, the prior art machines fail to provide any manner for the user to recover their funds. Someone who has stolen or found the receipt can simply redeem the receipt from the retailer's cashier and receive the cash payment.
Accordingly, there exists a need for a coin redemption system that provides security measures to guard against the unauthorized reproduction of redeemable receipts issued by the coin redemption machine. Further, there exists a need for a coin redemption system that provides security measures to guard against the unauthorized redemption of otherwise valid receipts.